Reuters/Dubai

Construction company Saudi Binladin Group plans to cut about 15,000 staff, people with knowledge of the matter told Reuters, in a sign of the pressure on the industry as the Saudi government trims spending in response to low oil prices.

The possible layoffs at Binladin, one of Saudi Arabia's biggest firms and among the Middle East's largest builders, would represent a small fraction of the group's total workforce, which is around 200,000, according to its LinkedIn page.

Some of the 15,000 workers will be laid off immediately, while others will be transferred temporarily to work on a multi-billion dollar airport project in Jeddah, another source said.

Labour market reforms, designed to push more Saudi citizens into private sector jobs, have since 2011 made it more difficult and expensive for construction firms to hire foreign workers, pressuring the industry.

In September, the Saudi royal court said Binladin had for now been suspended from taking new contracts after a crane toppled into Mecca's Grand Mosque during a dust storm, killing 107 people. An initial government probe found Binladin had not properly secured the crane. Binladin did not issue a public statement in response to the suspension.

The biggest long-term challenge for the business of Binladin and other Saudi construction firms, however, may be government spending curbs in an era of cheap oil.